The price of gold is in trouble.
Gold continues its downward trend that started on September 25 by trading lower at $1,840 per troy ounce. On Monday during the Asian session.
Over the weekend, China’s Manufacturing PMI data was released. While it indicated an increase into positive territory. It offered little support for the price of gold. China’s NBS Manufacturing PMI increased to 50.2 in August from 49.7 in July. Which was higher than the anticipated 50.0.
The Non-Manufacturing PMI increased from the previous reading of 51.0 to 51.7. Exceeding the market average of 51.5 from the previous reading.
next the mild readings from the United States (US). The US Dollar Index (DXY) maintains its momentum and increases in the next trading session. Around 106.20, the current price bids higher.
US Treasury rates are rising, which puts pressure on gold and other non-yielding assets.
The US Treasury Yields’ positive outlook is also helping to boost the USD’s strength. By the time of publication, the yield on a US Treasury note with a 10-year maturity was 4.61%, up 0.96%.
Precious metal prices are under pressure, particularly because of the strong US Dollar (USD) following the mild economic statistics given on Friday. The US Michigan Consumer Sentiment Index for September increased from the previous reading of 67.7, which was in line with expectations, to 68.1.
In August, the US Core PCE Price Index (YoY) increased by 3.9%.decreased from the prior measurement of 4.3%, as predicted. Contrary to market expectations, Core PCE (MoM) came in at a lackluster 0.1%, which was below the 0.2% preceding figure.
After the Friday session, proposals that would have prevented a government shutdown were successfully enacted in the US, providing funding until November 17. The rising trajectory of the US Dollar Index (USD) has resumed as a result of this event.
Dealers will be keeping an eye on the impending US ISM.
Ahead of Jerome Powell, the Chair of the Fed, speaking on Monday, the gold dealers will probably be keeping an eye on the impending US ISM Manufacturing PMI for September.
